Institution: Australian economy expected to weaken, impact by rising oil prices and interest rates.

In a research report, Adelaide Timbrell of the ANZ Bank stated that the Australian economy would weaken due to rising oil prices and interest rates. The senior economist noted signs of a decrease in household spending before the outbreak of conflict in the Middle East, such as a slowdown in monthly household spending and a weakening in consumption growth in the fourth quarter of 2025. Timbrell said, We expect consumer spending growth in 2026 to be relatively weak, reflecting the impact of higher oil prices and inflation, rising interest rates, and a soft labor market. ANZ Bank forecasts weak economic growth in 2026 at 1.3%. The bank expects the Reserve Bank of Australia to raise interest rates by a total of 75 basis points, with 50 basis points already completed and an additional 25 basis points to be implemented in May.